Canadian producer Aurora Cannabis received gross proceeds of 38.8 million Canadian dollars ($28.3 million) from a bought deal offering after the underwriters’ over-allotment option was fully exercised.
Aurora said in a news release it intends to use most of the net proceeds to repay the remaining balance of the company’s convertible notes at or before maturity, which amounts to roughly CA$34 million.
By repaying the remaining convertible debt balance, Aurora said it will save almost CA$2 million in annual interest payments.
Edmonton, Alberta-based Aurora sold roughly 53 million common shares at a price of CA$0.73 per security.
Aurora said the gross proceeds include the exercise of the over-allotment option by Canaccord Genuity, an investment bank and research firm, to purchase 6,937,500 additional common shares.
Aurora said it has approximately CA$227 million of total cash available.